The demand momentum is very strong across rural as well as urban markets and Berger’s plants are running at close to 90 percent utilisation rate
PRO Only Highlights
– Quarterly performance largely backed by improved realisations
– Medium-term triggers China plus and protectionist measures for tyre industry
– Valuations not inexpensive; but improved medium-term outlook
The September-quarter revenues of Berger Paints were fuelled by favourable market conditions as economic recovery gathered momentum post the second wave. However, the surge in commodity inflation once again weighed on profitability. Key result highlights In Q2, Berger exhibited continued strength and momentum across all business verticals. Consolidated revenues for the quarter came in at Rs 2,225 crore, up 28 percent year on year (YoY) and 24 percent sequentially. Commodity headwinds adversely impacted gross margins, which contracted 380 basis points…
